In equilibrium position, the spread between foreign and domestic rate of interest must be equal to spread of Options: A . &nbspdomestic rates B . &nbspforward and spot exchange rates C . &nbspforward rate D . &nbspspot rates

In equilibrium position, the spread between foreign and domestic rate of interes

Question

In equilibrium position, the spread between foreign and domestic rate of interest must be equal to spread of

Options:

A . domestic rates

B . forward and spot exchange rates

C . forward rate

D . spot rates

Answer: Option B
Answer: (b).forward and spot exchange rates

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